SOLUTIONS FOR ASSET MANAGEMENT COMPANIES
The company Aladdin-Systems offers a complex integrated solution for asset management companies
that have the license for managing the assets of mutual funds (PIFs) and non-government pension
funds (NPFs), as well as for trust asset management. This solution allows keeping back-office and
Russian statutory accounting and producing all necessary reports on the basis of a single set of documents.
Depending on what licenses the company has, we may construct a system with all the necessary
functionality on the basis of the following modules:
is the kernel of the document-flow and recording system and a tool for modifying the settings;
Additional modules for the control of assets portfolio composition and structure (pension reserves),
for the analytical accounting for assets in trust management, for reporting, etc;
The system supporting a distributed agents network ALADSYS.MF Agents Network™
ALADSYS.Securities system allows the recording of proprietary assets and assets
in trust management using the two Charts of Accounts - in monetary terms and in securities quantities.
The system provides information on the cash and securities current location (e.g. on stock exchanges,
at brokers, etc), on payables and receivables, and on current and expected settlements.
Bookkeeping may be performed in a single system for several companies, each of which may have its own clients.
Proprietary and clients' portfolios may be divided into balance sections with different evaluation methods
(LIFO, FIFO). For the clients' portfolios sections the weighted average or selected batch evaluation.
The system can process transactions with stocks, bonds, promissory notes, derivatives, and other
financial instruments. It can handle exchange and off-exchange deals, as well as the deals concluded via
external brokers. The system can handle securities purchases, sales, barter trades, repo and reverse repo.
Import methods allow uploading trade data from the exchange listings of MICEX, MSE, SPCEX, as well as
uploading trade data of RTS and the Stock Exchange "St-Peterburg" from the Electronic Document Center
system (TsED). It is possible to customize the import in accordance with the formats received from
the broker. The system is capable of on-line interaction with various internet-trading software systems
(NetInvestor, Quick) and trade terminals (RTS-Plaza).
The system can handle corporate actions such as stock conversion, cash dividends, stock dividends,
securities maturity and redemption, and coupon payments with various payment arrangements.
The system supports transactions with securities denominated in foreign currencies and their revaluation
by market quotes ("marking to market").
Besides investments in securities, the system can handle investments in bank deposits, real estate,
precious metals, etc.
The system can calculate the asset manager's service fees and expense reimbursements on the basis
of the pre-set pricelists - both on-line for each transaction and aggregately for a period;
it can also allocate expenses by investor, by batch, or by transaction.
The system can produce reports on actual and planned cash flows and securities flows, on proprietary and
clients' portfolios balances and their market value estimates.
The estimates are made on the basis of market quotes, which can be uploaded from files coming from
various trade venues. Different sets of quotes may be used for mutual funds (PIFs), non-government
pension funds (NPFs), the Pension Fund of the Russian Federation (PFR), and individual trust asset
management contracts. The manual input of value estimates from independent evaluators is also possible.
ALADSYS.Fund™ is the accounting system for mutual funds - PIFs (as isolated property complexes) in
accordance with the Finance Ministry and FFMS requirements. Whereas ALADSYS.Securities/Asset Management™
system provides management accounting for operations with the assets of a mutual fund, which is considered
as a single client, ALADSYS.Fund™ system makes postings to the mutual fund's accounting system on the basis
of the same set of input documents and also provides the bookkeeping for the operations with the fund's
shares for each shareholder and for each transaction with the fund's shares. For each shareholder of
a mutual fund, the system allows choosing an appropriate share evaluation method (LIFO, FIFO),
as well as taking into account the additional expenses for tax deductions. The system traces the process
of submitting and fulfilling orders for share purchase/redemption and payments related to such orders;
it supports single and multiple orders, mass formation of payment documents for share redemption,
payments tracing, calculation of distribution/redemption agents' sales fees (i.e. front-end load and
back-end load), setting reserves for the payments of management company's fees, brokers' fees,
special depository's and special registrar's fees, and other operations. Mutual funds with a large number
of share purchase/redemption orders may arrange the automatic processing of their share purchase/redemption
orders and payments, with orders and payments uploads and matching. The system calculates the fund
performance indicators (net asset value, share price, etc) and produces all the reports in accordance with
the FFSM requirements to mutual funds.
The system can produce aggregated reports required by the FFSM Instruction #33, with the possibility
of download into the electronic FFMS questionnaire; it also supports FFMS requirements to mutual
funds reporting (Instructions #03-41/ïñ, #03-42/ïñ) and the reporting on Pension Fund of Russian
Federation (Instructions #04-6/ïñ è #04-8/ïñ).
The control module for portfolio composition and structure (for pension reserves of non-government
pension funds) includes tools for setting restrictions and reporting on portfolio composition and
structure and on the deviation of portfolio structure from regulator's requirements and fund's
Accounting for proprietary and clients' (i.e. trust management) operations with assets may be done on
the basis of back-office bookkeeping and may subsequently be downloaded into an external statutory
accounting software system. We have acquired extensive experience in creating links with a number of
external accounting software systems. The companies working with individuals may be interested in
the Tax Agent's and Tax Reporting modules with the possibility of download of 2-NDFL report in the electronic
format of the "Taxpayer" system using the classifier KLADR.
ALADSYS.Agents Network™ system makes it possible to organize mutual funds share purchase/redemption
orders input terminals, so that orders are sent either on-line (via a designated line) or off-line with
the use of import-export tools or via the ALADSYS.Message™ system of message transmission.
The Agents Network system sends the orders and information requests to the asset manager and receives
from it the statements on order execution results and answers to the information requests. As to
the asset management company, it may interact with the special registrar in a similar manner.
Analysts and portfolio managers may be interested in the possibility of splitting the assets portfolio
by manager (trader) and in the Analytical Reporting modules producing the reports with the possible
categorization by asset type, by industry and sub-industry in accordance with the pre-set industry structure;
they may also be interested in the on-line portfolio-monitoring functionality.
There are successful implementations of solutions combining the IT systems of a broker and an asset manager,
or those of several asset managers of different jurisdictions, with the possibility of performing
back-office bookkeeping for client companies.